I didn’t know this, but it explains a lot:
“When Theresa Gattung was named as new chief executive at Telecom in October 1999, the shares closed at $8.61.
Yesterday, after news that British Telecom executive Paul Reynolds will replace Gattung, the shares closed at $4.48”
It’s not like this is a hard job. The share price reflects the sum of the present value of future streams of income from Telecom. By under-investing in those future cash flow streams at the expense of short term return Telecom has almost halved it’s value. Telecom compuned the error by dubious investments in Australia and Ferrit, and I would assume that Gen-i was purchased for far to much.
What would I do? get rid of any non core businesses, invest in infrasucture to provide leading edge services, open up the exchanges and compete vigourously on service, quality and price. I’d also drop most of the marketing spend and get rid of the branding that treats customers like idiots. Aong the way a lot of senior managers playing politics with a small p would be out the door.
There is plenty of money to be made in Telecom. It could almost be a buy. almost.